The Crypto Craze, triggered by the boom of Bitcoin, continues to draw attention ever since. The crypto family is increasing rapidly (with 120 million investors globally). People are becoming more aware of it, which has made its market capital reach 2.8 trillion dollars, which is 600 times the value it was in November 2020.
According to The World Economic Forum White Paper (WEF 2018), the digital forms of money and blockchain innovations could build the overall exchange volume. Therefore, resulting in better levels of administration and lower exchange expenses.
Challenges and Advancement
The physical unavailability of cryptocurrency often led to its consideration as non-existent. It was not the only challenge that cryptocurrency had faced. Building a reputation was also a tedious task for them as introducing something so different undeniably requires assurance that is ascertained by building trust.
Though the journey of crypto has not been steady, it did reach its new all-time highs, and with every passing day, new opportunities are arriving at its door, with more people gaining trust over it. The advancement of NFTs brought substantial hype in the flourishing of crypto. Ethereum has benefited a lot through this revolution.
What have we learned so far?
Now that people have been investing in crypto for a long time frame, there have been several deductions, improvements, and innovations. It is brisker than ever, with several possibilities and initiations.
Let us have a look at some insights we have received so far.
Do Rigorous Research!!
It cannot be stressed enough. Before investing in any cryptocurrency, research the founder, the team, the financiers, and the project’s mission. Do not get trapped into price manipulated cryptocurrencies.
Do Not Panic Sell
The cryptocurrency market is unpredictable. Be patient and wait for the right opportunity. SHIBA is a great example, as it incurred 120% growth in October 2021.
Do Not Rush Because Of FOMO!
Never fall for pump and dump, it is when the participants uplift the value of the coin and bring it to light, and then the crowd falls under the trap, they drop the coin.
Invest in Stable Coins
Stable coins like tether, Binance USD, TerraUSD, etc, are the ones you can invest in unless you are acquainted well enough to make investment decisions for your portfolio. They are non-volatile currencies that hold their value securely, so you need not worry about the price fall. This enables you to redeem your funded money and invest it in something else.
Try Yield Farming
When you deposit your money in a bank, you receive interest for it, in the same way, yield farming is when you lend cryptocurrency and earn returns based on it. You as a liquidity source may pool as per your convenience. The return generated will be received as per the percentage of investment done.
Conclusion
2020 and 2021 were iconic for cryptocurrencies with several ATHs and market crashes. Therefore do not let greed overpower your patience. Why get yourself a 10% profit when you can earn 200%?
Remember that Bitcoin is the safest; it is a good hack to have 50% of investment on coins like Bitcoin or Ethereum. Stick with the trustiest exchanges and study thoroughly.
The greater the profit, the greater is the risk. So do not fall for any unknown cryptocurrency just because of the low price. Either invest in the prominent ones (like ripple, Polkadot, etc.) or do your research well.